CI topic 6 International negotiations

CI topic 6 International negotiations

1. One needs to develop knowledge in the country before applying it with flexibility

2. Negotiation process

   • Step 1. Preparation
     • Know what your company wants from the negotiation, understand the other side
       • Attitude towards negotiation, win-win or win-lose
         • Direct,indirect,formal or informal communication style
           • high or low context environmnet
             • Specific or general agreement
     • Step 2. Building the relationship
       • First stage of actual neogtiation process
         • Concentrate on social rather than business issue,get to know negotiation partner
       • Step 3. Exchanging info (relationship/technological detail and first offer)
         • Exchange task-related info,know about company background,vision and mission
           • both sides stating what they expect from the relationship
             • Culture influences what info is given and requested and how the info is presented and how close the initial offer is to the expected
         • Step 4. Persuasion
           • a mix of tatics, verbal vs non-verbal e.g. rewards, interruption
             • "Dirty tricks" that pressure opponents to accept undesirable agreements
               • e.g. you are rich i am poor syndrome, seek sympathy
           • Step 5. Concessions (give in on less important points to achieve major objectives of the potential deal
             • Sequential and holistic approach
             • Step 6. Agreement(final agreement,signed contract)
               • Step 7 post agreement
                 • Consists of an evaluation of success of a completed negotiation, understand what went well and what went wrong of approach used
                 • Further develop closer relationship with counterparts

3. Must understand all components of culturally different communication styles (verbal and non-verbal

4. competitive negotiation: where each side tries to give as little as possible and tries to win wont lead to long-term relationship, win-lose situation

   • Problem solving; negotiators seek out ground that benefits both sides interest-win-win stuation, lead to long-term contracts and relationship